Global Courant 2023-05-12 21:35:38
BRUSSELS – Korean Air Lines expects EU competition authorities to issue a formal warning about its bid for Asiana Airlines by the end of May, South Korea’s largest airline said Friday.
The deal announced in late 2020, which would see Korean Air become Asiana’s largest shareholder in debt, is the biggest shakeup in the country’s airline industry in nearly three decades.
The European Commission opened a full-scale investigation into the takeover in February amid fears it could reduce competition in passenger transport on four routes between South Korea and Europe.
Sources have told Reuters the four routes are to Barcelona, Frankfurt, Paris and Rome.
“The European Commission (EC) has not made any official announcement about the issuance of an appeal (SO),” a Korean Air spokesperson said in an email to Reuters.
“However, issuing a SO is common practice in a phase 2 merger review and discussions with the EC will continue. We expect the EC to issue a SO at the end of May.”
With such a document or indictment, the EU Competition Enforcement Officer can explain possible anti-competitive problems arising from the deal.
The Commission, which has set an August 3 deadline for its decision, declined to comment.
After receiving a notice of appeal, companies may request a closed hearing before offering corrective action. REUTERS
Korean Air expects EU antitrust warning
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